Pension funds go for crypto investments for the first time

Two public pension funds are now investing $40 Million in cryptocurrencies through a venture of Morgan Creek Digital. This is the first crypto investment made through Pension funds in the history of the two. The pensions manage a boasting $1.2 billion worth of asset portfolios.

The fund is to be utilized to invest in both blockchain startups and cryptocurrencies. The venture is already investing in Bakkt and Coinbase. Morgan Creek founder, Anthony Pompliano stated that while investing in various companies a fraction of the sum will be retained through digital assets.

However, how the investments go for these institutions will decide the future of the industry as a whole. Moreover, critics consider that such investments of pension funds could be related to manipulation and may fall prey to security breaches.

On the other hand, Pompliano believes that blockchain and crypto provide solutions to the pension fund problems and that the platform can prove to be a more efficient one. Furthermore, he stated that this could end the “impending US pension crisis” while acknowledging the news of institutional investors like a victory through a tweet.

In an interview, he stated that institutions believed in the potential of the crypto industry and that if the industries stay it could benefit the investors on a large scale. He also added that the smarter ones are not distracted by the price but rather look at the long-term applications and how to utilize them and are therefore rewarded through the innovation. He also noted that there were certain risks involved in the business.

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About The Author

Having been involved in the Digital Marketing industry since 2005, Dan has always been focused on performance. With a core background in research, his aim is to understand the customer behind the technology, in order to better cater for their needs, and in turn improve performance for clients. Crypto enthusiast and a true blockchain believer.